Empirical Researches On The Effect Of Corporate Governance On The Issuance Examination Committee

After almost two decades, China's capital market has made considerable progress. Since 2001, the issuance system of Chinese stock market has been implemented important reforms, that the approval system replaces the examination system. One of the most critical aspect is the China Securities Regulatory Commission (CSRC) to establish a stock issuance examination committee, which is made the company's IPO (Initial Public Offering) application to be approved. Since its inception, the issuance examination committee whether to insist on a fair, just and open as the guiding principle for improving the quality of listed companies from the source has great significance. In the key progress of the issuance examination committee judging whether the issuers'IPO application can get through or not, the research in our country is now almost empty, what is the impact of the issuance examination committee of the factors that make the final audit result.For the IPO market, the main research of foreign scholars is the phenomenon of short-term underpricing and long-term underperformance. In addition to the domestic scholars examine whether China's stock market also exists the phenomenon of short-term underpricing and long-term underperformance, they also examined the effect of the reform of the issuance and regulatory system In China's stock market, and how to improve the CSRC's audit act. For corporate governance issues, the domestic and foreign scholars'research only focused on the transaction cost theory, agency theory, stakeholder theory and other traditional theory. Almost of scholars have not been involved in this interdisciplinary areas, which is the effect of issuers'corporate governance for the issuance examination committee's result. Therefore, the study in this area it is very necessary.This paper used the sample of 2006 to 2009 all issuers'application, with the data which disclosure on the enterprises CSRC's website. With theoretical assumptions of the effect of issuers'corporate governance for the behaviour of the stock issuance examination committee, we use binary logistic regression model for empirical research.The empirical results show that, the members of the issuance examination committee prefer to the issuers with following characteristics: (1) the issuer which does not exist horizontal competition, occupation of funds, hypothecation and loans; (2) the issuer whose business, finance, assets, etc. was independent; (3) independent directors and outside directors were majority of board of directors, outside directors have different expertise and appropriate professional committee were sat; (4) a higher proportion of independent directors; (5) the issuer which has political connection and compliance. In contrast, the equity balance, post of chairman and general manager of two-one, "internal control" have not significantly affected if issuer approved to be issued. By analyzing the effect of the corporate governance index on the IPO audit results, the results show that higher levels of corporate governance of the issuer, the more easily through the issuance examination committee. Combining these two aspects of regression analysis, the paper argues that corporate governance is the important factors which can affect the issuer's progress of IPO examination. Good corporate governance structure is an important means for the issuer to transfer the information of company to the issuance examination committee.This paper has certain exploratory, contributions are mainly embodied in the following aspects: First of all, innovative research perspective. The issuer getting through the IPO examination has a strategic importance for an enterprise's development. This paper contents how corporate governance mechanisms of the issuer affect the results of the issuance examination committee. This perspective in our country rarely involved in the study, with a certain degree of innovation. Second, the research content and innovative method. Finally, the paper raised a number of corporate governance recommendations for the issuance examination committee review, which can provide reference to the issuer.The conclusions of this paper have following theoretical and practical significance: This paper attempts to link corporate governance with IPO review results, in order to find the corporate governance variables which can affect the behavior of the issuance examination committee. From this new perspective, it helps to find out the useful of corporate governance structure in the process of the IPO market. Meanwhile, it helps the issuer to improve their company's capital structure and corporate governance, after clearing the connection between the issuer's corporate governance structure and the IPO audit results, with a certain reference.